Poor data practices can ruin a company, research claims

People will not do business with companies known for misuse of personal data.

Shares

A lot of consumers (41 per cent) submit false data when signing up for products and services online, a new report by RSA says. According to the company, this highlights ‘continued scepticism over how such data is used’.

More than half (55 per cent) of respondents would avoid giving data to a company they know had been selling or misusing it before.

More than three quarters (78 per cent) said company reputation is an important factor when making purchasing decisions, and 69 per cent would completely boycott a company that’s known to have poor data protection practices.

Nine in ten (90 per cent) said they were worried about their data being lost, stolen or misused. Their biggest issues are getting their money or identity stolen, as well as having sensitive and / or embarrassing information going public.

“As milestone regulation, such as GDPR, comes into effect this year, data security and privacy are hot on the agenda for consumers and companies alike,” said Rashmi Knowles, Field CTO, EMEA at RSA Security. “Consumers are keenly aware of recent high profile breaches, and are therefore demanding much more from the companies that handle their data.”

“The business impact of not ensuring appropriate levels of security will reach far beyond fines for compromising customer data. With more than half (54%) of respondents less likely to buy from a company they know has been mishandling data, and 62% inclined to blame the company above anyone else if data is lost, it’s clear consumers are ready to vote with their feet against organisations that fall short of their expectations. The financial and reputational damage of a data breach in 2018 could be devastating.”

The report is based on a poll of 7,500 consumers in France, Germany, Italy, UK and the US.